February 2022: Learn how Business Process Analysis can Benefit your Organization

Learn how Business Process Analysis can Benefit your Organization

By: Jennifer Meals

Since joining Warren Whitney, I’ve spent some time reflecting on the most common issues companies face. In my experience, one issue that consistently needs to be addressed is modifying and improving processes. Improving process flow (also known as business process analysis) has a significant positive impact with the least disruption. Here is an overview of what BPA is and how it can benefit your organization.

 Business Process Analysis

Business process analysis (BPA) is a methodology to analyze business operation processes to find issues and improve efficiencies. It looks at the steps and parties involved in a specific function, along with the information exchanged. This deep examination of process flow aims to find cost savings, improve efficiency, increase revenue, and improve business engagement (to name a few of the benefits!).

When to consider BPA

Organizations should routinely review their processes to identify areas for improvement. A review can highlight obsolete processes due to any technological changes or innovations by competitors, and it can also identify bottlenecks that slow decision-making processes. Consider BPA before introducing any new technology like automation; this will allow you to understand the necessary functions to remove or implement.

Objectives for the analysis

The overarching purpose of this initiative is to identify potential improvements within existing processes. To achieve this, here are items to consider:    

#1- Streamline processes. What tools can improve the process? Can the process be automated via excel, exports, or designing web tools? What are the roadblocks, and how can they be removed? Employee education and tool creation can streamline processes and reduce time. Evaluate the additional work needed to perform a new task. There are many times when the administrative cost is greater than the benefit. If a further analysis or process costs more than the gain, reconsider the initiative.

#2- Identify double entries. Are you entering information multiple times? Are you using a report and manually entering it from one system into another?

Manual entry increases the risk for error, and it is time-consuming. And then it takes even more time to correct these mistakes. Creating integrated tools can be a huge time saver and reduce error. Reduce manhours by creating imports and exports when system integration is not possible, and use macros or tools.

#3- Understand your metrics. A common issue in companies is inadequate reporting and KPIs — incomplete data can lead to bad decisions. Dive into the data and ask: Is the report accurate? Does it make sense? What data is needed to paint an accurate picture? What reporting fields should be required? A report showing only partial information can have negative consequences.

#4- Improve remote work efficiencies. Is there a shared drive that all employees have access to? Sharing documents can allow for collaboration from multiple people and enable team members to access data. When folders are organized and accessible from anywhere, it enables collaboration, streamlines processes, and allows one employee to pick up where someone left off. If an employee is out sick or in a meeting, someone can easily access data from a shared resource. This simple implementation helps work get completed on time! Because data is backed up, this also reduces the risk of lost data.

Using the findings from these various steps, sort out the flaws and define programs to improve them. The kinds of improvements that work for you depend on the solution — there are no one-size-fits-all solutions. Equally important is understanding the impact any of these changes may have on other departments. Make sure you keep in mind the long-term effects of any changes you will make and decide whether to make small, modest changes or completely re-engineer the process.

**

Jennifer Meals joins Warren Whitney as Director of Finance & Accounting. She works with clients seeking fractional and interim CFO services. She brings over 18 years of experience helping organizations in accounting, finance, and executive leadership in nonprofit and private sectors. To learn how Jennifer or our other consultants can support your business, contact Stephanie Ford at sford@warrenwhitney.com or 804.282.9566.

MAKING POTENTIAL HAPPEN